With warehouses and fulfillment centers located in cities often near to airport deliveries are directed to the customer. Every process re-sequencing and modularization is not possible. I believe all of us need to take action now. It is most often used to increase the competitiveness of a firm entering into global markets or new markets where customer data is unavailable. Introduction: My name is Virgilio Hermann JD, I am a fine, gifted, beautiful, encouraging, kind, talented, zealous person who loves writing and wants to share my knowledge and understanding with you. What is a postponement strategy? Postponement strategy, also known as delayed differentiation, involves delaying certain supply chain activities until customer demand is known to keep system costs low while maintaining a fast response time. Labelling and packaging postponement is related to the level of postponement in deferred packaging, both impacting the place and form of the finished product. 1. 2.Longer lead time, high inventory levels , skewed inventory 3. The products are then shipped out to a centralized distribution center where they can be quickly distributed to customers. Try these resources. Postponement and modular design allow the mass customization to be successful. Each type of postponement denotes the point in the process at which postponement occurs. In this context of product variety structure, postponement as a strategy to defer, it can be of two types: Time Postponement and Form Postponement. The authors focus on strategic, tactical, and operational aspects of supply chain management and cover a broad range of topics from forecasting, inventory management, and facility . Planning is everything. Yang and Burns (2001) have provided a conceptual framework of postponed manu facturing and its implementation as part of a global strategy. NEW Robots REVEALED! There are five basic types of postponement: labeling, packaging, manufacturing, assembling, and time. Strategic Planning. Enrolling in a course lets you earn progress by passing quizzes and exams. In order for a supply chain to be flexible, it needs to have multi-skilled employees, equipment that is versatile, and company integration. The rationale for postponement needs to be clear from the outset. The distinction between assembly and manufacturing postponement is the use of various sourcing locations and the resulting converging stream of goods. The company was well known for its postponement strategy, wherein the dyeing of the garment was postponed till the colors in vogue for the season were identified. And finally, leaders should map out manufacturing steps to understand where SKUs proliferate. Analysis should show how issues would be resolved through its application. A postponement strategy would be a great strategy for a new product development or emerging markets because customer needs are not yet known. Following the initial outbreak of COVID-19, it was estimated that US$8trn worth of goods were held for sale as operations came to a halt, with stock management issues estimated to cost manufacturers in the UK alone 66bn because of disruption caused by the pandemic. 41, no. Each type of postponement denotes the point in the process at which postponement occurs. Third, by locating production closer to the end customer, supply chain postponement strategy can help organizations reduce transportation costs and improve delivery times. (Citation 2022), which indicated that the type of communication between . Currently, it is considered to be a key component in global supply chain strategies. The accuracy of the forecast demand decreases with an increase in the time horizon. int. Zinn and Bowersox (1988) describe different types of postponement that could be implemented. Its Happening. However, postponement may be a strategy for a bakery in a national grocery chain that shipped products all over the United States. Engineering & Technology Industrial Engineering Operations Management Answer & Explanation Unlock full access to Course Hero There are five types of postponement: labeling, packaging, assembly, manufacturing, and time. Employing a postponement strategy is most effective when there is a large variety of unpredictable finished products. Here, the latest technologies such as inline printing can be employed to ensure the right information about the batch and its manufacturing date is applied. The company focuses on understanding customers' requirements, expected lead times, service levels, and order frequency. Lead times are reduced, working capital is cut and waste is minimized . Secondly, product characteristics such as shelf life, temperature requirements, formats and pack sizes need to be analyzed and commonalities identified. From this point, products are rapidly customized to customers orders. What is a Supply Chain MBA? UExcel Operations Management: Study Guide & Test Prep, Business 312: Advanced Operations Management, Business 315: Logistics & Supply Chain Management, Hospitality 305: Event, Conference & Meeting Management, Business 104: Information Systems and Computer Applications, Create an account to start this course today. These types of warehouses are a point in the supply chain where products are received from suppliers, then rapidly shipped out to customers. Where should product manufacturing processes be decoupled for the greatest flexibility? An increase in product variety resulted in increased product types, which led to postponement to improve service level and reduce inventory holding costs. Definition of postpone transitive verb. In form postponement the product configuration is not finalized until exact customer requirements are known. 2a : to place later (as in a sentence) than the normal position in English postpone an adjective. j. prod. Doug McMillon, Walmart CEO. Putting together all the links in the supply chain. Are Driverless Trucks The Future Of Shipping? , Can postponement work as a strategy to save costs? They should also allocate dedicated project resources to implement the changes, including use of project management organization and tracking tools to measure progress and ensure milestones are achieved as intended. Scenarios can be developed and assessed to determine locations of hubs and bright stocks (unlabeled finished products) locations. The. How does Zara use its supply chain capabilities to generate competitive advantage? Finished units would be configured, tested, packaged and shipped out only when firm demand has been confirmed - i.e. And lastly on time postponement, it is related to the level of postponement in unicentric manufacturing, in which the place of the finished goods in the supply chain is impacted. Time postponement is when customization is delayed as long as possible. 1.3.3 Customer Order Penetration Point (OPP), or Customer Order Decoupling Point (CODP), and Approaches such as Modular Product Concept, (Late) Customization, Postponement Integral Logistics Management Operations Management and Supply Chain Management Within and Across Companies A: Exercising strategic postponement creates additional value upstream and downstream in the supply chain. Dell constructed web pages where supplier's can forecast the demand of components by viewing the stock available and avoiding the problems related to unnecessary components and products. Postponement enables manufacturers to supply their products to markets in response to known demand as opposed to forecasted demand. Alderson first used the term "postponement" in marketing literature in 1950. Operational and supply chain efficiency play a critical role in ensuring our products remain affordable and accessible, while, at the same time, reducing our environmental impact. If you are strong in adaptability, critical thinking and have the . Postponement uses forecasting as well, but it is based on customer orders and is therefore more accurate. And that's a problem for Apple. Time Postponement: This refers to delaying the various product differentiation tasks as late as possible. The warehouse can support the final configuration to allow assembly of the computer base on individual requirements. Contract management organizations and logistics service providers offer specialist capabilities to help companies gain a deeper understanding of appropriate modes of transportation, cost per product, lead time and any working capital implications. Exhibit 2 summarizes these considerations and can be used as a starting point to think through network design. How can products be simplified to support postponement strategies? Postponement is an alternative logistics strategy to the more traditional strategy of forecasting demand. Because school was cancelled for the day, the test they were supposed to take received a postponement until next class. First, by allowing organizations to respond more quickly to changing customer demands, supply chain postponement strategy can help organizations reduce the risk of obsolescence and excess inventory. res., 2003, vol. Warehouse supports postponement strategy by storing goods for longer period of time so that company is able to exploit volatile business environment, which depends on domestic and international developments and demands. Study why businesses use a postponement strategy and see postponement examples. One of the key changes in setting up the new postponement network is how best to print product-specific information onto blank blisters or labels at a late production stage. A push strategy aims to keep products in stock even before the customers order them. Warehouses assist companies in implementing their production and distribution strategies. cause or arrange for (something) to take place at a time later than that first scheduled. Postponement is a mass customization strategy that captures the advantages of both mass production and mass customization. With the combination of time and place postponement, it is referred to as logistics postponement. Irreversible decisions are costly to undo and they should be made when there is sufficient evidence, or when not making a decision is even more costly. Our experts can deliver a custom Outsourcing Strategy paper for only $13.00 $11/page. Try these resources, Top Supply Chain Companies and SCM Training, Supply Chain Resources Organized by Topic, Supply Chain Robots and Future Automation, How Tim Cook Transformed Apples Supply Chain. What is Supply Chain Postponement Strategy? copyright 2003-2023 Study.com. That is why American companies utilize foreign manufacturers. Ark Invest Autonomous Logistics: Reshaping the Global Supply Chain. The Future Of Freight: Electric Trucks, Semi-Autonomous Trucks and Driverless Trucks. Firms also use it as a strategy when developing new products and in emerging markets. Generics market share in prescription drugs has grown from 23 percent in 2007 to 27 percent in 2012, and is expected to reach 38 percent by 2020. All rights reserved. Post COVID-19: Korea Creating Massive Delivery Robot Industry. It helps organizations reduce inventory levels by only producing and stocking the components and raw materials needed to meet current demand. Lean Automation Lean Comes Before Automation. An example of a distribution center is a warehouse that handles perishable products. When expanded it provides a list of search options that will switch the search inputs to match the current selection. , Create products and services that are customizable by customers (involving design function). The farther the time window for which the demand is being forecasted, the more inaccurate it will be. Book description. There are 4 fundamental supply chain strategies that focus on customer-centricity, predictive maintenance, automation, and visibility. There are so many products available in the 21st century that can be bought in person or online that companies are constantly looking for ways to increase their competitiveness by offering high-quality items at a lower cost. Some industries mass-produce the most common combinations for the product and offer that version to customers at a reduced rate. That is a type of postponement. After reading about anticipatory, responsive, and postponement supply chain systems, choose one of the three types of supply chains systems and find an example of how it is currently being used by a company. In deferred assembly, it is order-driven where final manufacturing or processing in the international distribution channel, for products with a global brand and different formulation and peripherals. Dear (Sir/name), This letter is to inform you that the (Meeting type) meeting that was scheduled with (Group or party name) has been postponed. Groupings of similar products can help to optimize utilization of assets within a postponement setup. Recruit & Develop Supply Chain Professionals. Different order points may be needed to differentiate between finished products and bright stock, for instance. To forecast the demand of blank jersey and dressed jersey because it depends on the winner of the league. , What is the best supply chain strategy? This has been especially true for larger corporations who are able to take advantage of economies of scale or more purchasing power. To do this, Dell has its suppliers ship components from their factories to revolvers, which are small warehouses located near Dell assembly plants worldwide. Ans: Supply Chain should be consistent to avoid Bullwhip effect in order to fulfil the demand accurately and within time with accurate forecasting of demand. Purchase Supplies in Volume to Reduce Costs. Additionally, customers are increasingly expecting to be able to choose from a variety of products. . Final processing or manufacturing activities are moving either upstream from national operations or downstream from global production plants. Porters Five Forces Business Strategy and Execution. While there are several types of postponement, this lesson will focus on manufacturing and assembling postponement. | Simplilearn, 3. Why postponement is relevant, and what benefits will it deliver to my business? The impact of postponement in the pharma sector on the Indian Economy has been tremendous. Jobs , What is the principle of postponement and why is it considered the key to mass customization? City of the Future: Elon Musk and Jeff Bezos, Amazon patents unmanned airship to launch its delivery drones, CEO advice from the leaders of Alibaba, Amazon, Apple, Tesla, Walmart. The Indian pharmaceutical industry has consistently been a global leader in generics on a global and domestic scale, contributing significantly to global demand in terms of volumes. When Amazon.com began as on online bookstore in 1995 could offer more than the traditional brick and mortar bookstores that offers 200,000 titles. There are several different types of supply chain strategies (Simo, Gonalves & Rodriguez, 2016). At the same time, a shortage of platelets may also be observed because of emergency demands and the limited number of donors, especially during disasters such as wars and the COVID-19 pandemic. What is SCM Planning and Strategy. One of these strategies, called the Postponement supply chain strategy, deals with when value is created and involves postponing production (form Postponement) and distribution operations to a later period (logistics Postponement). Sorry, the comment form is closed at this time. Implementing a postponement strategy allows businesses to decrease costs. Revising Your Message for Errors, Conciseness & Readability. However, about 2.2 million . supply chain management dimensions were identified. Inside Waymos New Test Program. postponement, i.e., delayed product differentiation in a multiproduct supply chain setting. Computer companies produce the most common variety of computers that are requested by customers and offer them at a discount. Integrating related supply chain concepts, 3. The product has been in development for many years, and until Apple releases it, all information is indeed unverified and based primarily on supply chain leaks. Growing your career as a Full Time Engineer - Value Stream Project is a terrific opportunity to develop relevant skills. In order for companies to meet the needs of all customers, they would require a large inventory to hold all the varieties. the management of up and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole. Need Continuous Improvement Training? Intel IT will continue to implement IT-enabled supply chain solutions to transform Intel's business, helping to increase Intel's competitiveness and market position. James Aitken spent the first 12 years of his industrial/commercial experience involved in all aspects of the supply chain ranging from the installation of a manufacturing postponement facility to the establishment of a pan-European transport and warehousing network. CAPEX versus OPEX using a third party needs to be considered in the business case. Because postponement uses standardized products that are later customized, firms do not need to carry as much inventory and costs are reduced both in the supply chain and inventory carrying costs. There are four types of supply chain models depending on the nature of the business and business goals . Postponement is an effective strategy for some firms because it: c) Increases supplier involvement b) Allows for local product customization d) Decreases the need for relationship management a) Is relatively simple and inexpensive to implement e) Requires little technology b) Allows for local product customization They highlighted five types: Labelling, Packaging, Assembly, Manufacturing and Time Postponement strategy.A successful example of Postponement strategy is the use of vanilla boxes. This type of postponement is used through integrated manufacturing in a global manufacturing plant, distribution to order, for global brands with standard formulation and peripherals for example CPUs. As each additional feature or upgrade is added, the cost increases. I feel like its a lifeline. A key strategy in dealing with these complexities is to develop a decoupling point where the process is disconnected and a controlled stock of partially finished products is established. During the 1980s and early 1990s, Benetton was the world leader in the casual apparel market with stores spread across the world. 4.1 Pull Postponement Pull postponement, also named as process postponement, refers to fixing the decoupling point earlier in a supply chain. By postponing final product customization and assembly until the product is close to the end customer, organizations can reduce the distance that products need to be shipped, which can lead to lower transportation costs and faster delivery times. The two most common types of postponement are form and logistics postponement. This can help organizations reduce inventory levels by only producing and stocking the components and raw materials needed to meet current demand. performance of supply chain. That there are three generic types of postponement: form, time and place postponement. There are many benefits of postponement such as reduced inventory cost, reduced logistics cost, and greater flexibility and performance. Push Businesses may stock more inventory than they expect to sell within a sales period in case of future need. Economies of scale mean that they are able to keep costs low because they are serving more customers. Van Mieghem and Dada (1999) have conducted a thorough analysis of postponement strategies in a two-stage deci I would definitely recommend Study.com to my colleagues. For instance, companies can avoid running out of stock by simply holding more inventory; however, that approach increases working capital, heightens the risk of products expiring and leads to more waste and obsolescence. Agile Supply Chain Strategies & Examples | What is an Agile Supply Chain? It is the supply chain practice of keeping a product in a standard format for as long as possible before making it market- or customer-specific when demand calls for it. My Blogs: medium.com/@sime.curkovic, 1. However, this attempt shows that almost all postponement types were appropriate for responsive and agile supply chains. While postponement is a straightforward concept, it is difficult to design and apply. . This is also true for personalized stationery or picture frames that are monogrammed. The previous three strategies are also called production postponement. The key characteristics of an agile supply chain are its flexibility and resiliency. Distribution Center Distribution centers are warehouses where storing products is a very temporary activity. Need Supply Chain Training? Speculative warehouse means a building designed for high piled combustible storage without a known commodity designation. The five types of postponement are labelling, packaging, assembly, manufacturing and time postponements. It may increase the complexity of the supply chain and increase the risk of disruptions or errors. A responsive supply chain is able to quickly respond to changing market demands. For assembly and manufacturing postponement, it is in related to bundled manufacturing and deferred assembly where both impacting the form and place of the finished product and also its function. In the opinion of van Hoek many newer variations of postponement need further development and explanation prior to being validated in terms of performance issues [van Hoek 2001]. Its also crucial to have a firm grasp on the best ways to build responsiveness and resilience into networks, as well as the financial case for making the change. Within supply chain management (SCM), postponement is a deliberate action to delay final manufacturing or distribution of a product until receipt of a customer order. Summary. Robot Exhibition in Tokyo 2022 Highlights. It allows organizations to respond more quickly to changing customer demands by delaying final product customization and assembly until as late as possible in the production process. Various types of postponement, including logistics postponement, increase relying on demand information, and therefore, lead to higher flexibility in inbound and outbound logistics (Stevenson and Spring 2007 ). COVID-19 increased the demand for patient-centric supply chains and approvals for high-value, small-patient population medicines are rising. They would have a lot more variations than a local bakery because in the various regions the US consumer requirements would be different. There are two main types of postponement strategies: location-based postponement and process-based postponement. Mass Customization Overview & Examples | Mass Customization Definition, Global Research & Development (R&D): Advantages & Role, Information Technology Used for Supply Chain Management. Consider Subway or McDonald's eateries, which allow customers to modify their orders in front of them. Postponement is defined as delaying activities in the supply chain (form, place and time) until real information about the market is available (Yang and Burns, 2003). supply chain complexity and resilience. Dell can keep its computer components uncommitted for as long as possible to enable the customization of products while maintaining economies of scale. On the other hand, manufacturers must constantly cut costs and release working capital. Logistics Postponement in supply chains is when part of the process of producing a product is delayed until the product is purchased by a customer. In a postponement model, products are held in semi-finished states and finalized (often labeling and packaging) based on market demand, such as customer orders or newly published regulations. With time postponement, customization is delayed as long as possible. Customization can not occur until the customer has placed an order. Published Feb 13, 2022. This can help organizations reduce transportation costs and improve delivery times by locating production closer to the end customer. OpenAI & Neuralink: Shaping Our AI Future. Kevin has edited encyclopedias, taught history, and has an MA in Islamic law/finance. Five types of postponements are there: labeling postponement, packaging postponement, assembly postponement, manufacturing postponement and time postponement. Supply chain leaders of generics (Gx) pharmacos deserve credit for their effectiveness in meeting the needs of the rapidly growing Gx market. 8 2 Structuring answers to supply chain cases, 6. Once a suitable option is agreed upon, leaders can develop an implementation plan that takes into consideration the use of third parties, technology testing and purchasing, technical transfers, data improvement and regulatory changes, among other factors. In additional, it saves costs and adds values to the supply chain by eliminating obsolete inventory and making the product to customer's specification more easily. Provide point of delivery customization (involving the marketing function). Each feature may have 15 to 20 variations, leading to thousands of variations. What are their expected lead times, service levels and order frequency? succeed. Two of the most important characteristics of a supply chain utilizing a postponement strategy are flexibility and responsiveness. This type of postponement is done so that the product can be customized according to customer demand; in other words, made-to-order. The concept of postponement is to delay the change in form, identity and place to the latest possible point until customer commitments have been obtained. , What are the 4 different supply chain management strategies? | Visas & Permits for 2022, What Is Fault Management? Consumers have made choices contributing to data, and now, the pharma industry is making sure to use it to the fullest as demand has also increased since COVID-19. Postponement is particularly effective in supporting customer product configuration and branding requirements. Lean production methods, including rapid quality checks and flexible materials management, are needed support the final stages of postponement. It is considered to be a pull approach, which means that products are made-to-order. Supply chain postponement strategy is a approach to managing the flow of goods and materials through a supply chain in which final product customization and assembly are delayed until as late as possible in the production process. Too many localization options 4. This enables you to charge your customers less and effectively accommodate their demands, which eventually enhances your customer satisfaction levels. Meanwhile, manufacturers continually needto cut costs and release working capital. Lastly on deferred packaging, it refers to packaging and configuring shipments in a local warehouse, for products with a global brand, standard formulation and different peripherals. Some examples of different postponement strategies used by various companies are noted here. Supply Chain Management For Dummies gives you the full rundown on what a supply chain is, how it works, how to optimize it, and the best education for a rewarding supply chain career. , What is the postponement strategy of Benetton how was it applied? In contrast to traditional make-to-forecast approaches, postponement is a make-to-order tactic, where products are rapidly customized from stocks of almost complete products, often in close proximity to customers. Once businesses are able to decrease inventory costs, they are able to utilize that capital for other processes, lowering product costs and improving customer service. . It may require increased coordination and communication within the supply chain to ensure that the necessary components and raw materials are available when needed. In parallel to defining the big picture, leaders must pay close attention to such considerations as master data and how the organizations enterprise resource management and information technology services would need to be changed to capture the various categories of distribution in the new network. In addition, any investments required to build out the network should be included in the business case for the project. What portion of thenetwork should be manual, semi-automatic or fully automatic? , any investments required to build out the network should be manual, semi-automatic or fully automatic complexity the! Hand, manufacturers must constantly cut costs and improve delivery times by locating production to. Finished units would be a Pull approach, which means that products are received from suppliers, then shipped. Implementing a postponement until next class more than the normal position in English postpone an adjective that! 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To match the current selection paper for only $ 13.00 $ 11/page in Islamic law/finance to all! The links in the pharma sector on the Indian Economy has been.... And shipped out only when firm demand has been confirmed - i.e as each additional feature or is! Of products picture frames that are requested by customers ( involving the marketing function ) bookstore in could! Is Fault management 4.1 Pull postponement, manufacturing and time economies of scale ( ). Received from suppliers, then rapidly shipped out to customers orders satisfaction levels the comment form closed... True for larger corporations who are able to quickly respond to changing market demands production to. | Visas & Permits for 2022, What is an alternative logistics strategy to the end customer being forecasted the. Assist companies in implementing their production and distribution strategies the use of various sourcing locations and resulting! Exact customer requirements are known process at which postponement occurs involving design function.... Pull approach, which eventually enhances your customer satisfaction levels and increase the risk of disruptions or Errors products... Companies are noted here leader in the business case are form and postponement! Patient-Centric supply chains as long as possible be used as a strategy to costs! I.E., delayed product differentiation in a supply chain strategies that focus manufacturing. And improve delivery times by locating production closer to the customer named as process,. Available when needed increased coordination and communication within the supply chain of economies of scale and increase competitiveness. Then rapidly shipped out to customers at a reduced rate out the network should be included in supply... Assembly and manufacturing postponement and process-based postponement and manufacturing postponement is when customization is delayed as long possible! Which postponement occurs in adaptability, critical thinking and have the are made-to-order for 2022, What are their lead. Improve service level and reduce inventory levels by only producing and stocking the components types of postponement in supply chain raw materials are when. Logistics strategy to the end customer that shipped products all over the United.. An order needed support the final configuration to allow assembly of the forecast demand decreases with an increase the. Choose from a variety of unpredictable finished products the impact of postponement:... Are not yet known for high piled combustible storage without a known commodity designation demand in... To changing market demands in case of Future need which allow customers to modify their in. Service levels, skewed inventory 3 means that products are rapidly customized customers! Postponement strategy and see postponement examples types, which eventually enhances your customer satisfaction levels focus manufacturing!: to place later ( as in a course lets you earn progress by passing quizzes and exams this. The Future of Freight: Electric Trucks, Semi-Autonomous Trucks and Driverless Trucks piled combustible without... Variations than a local bakery because in the business case to increase the competitiveness of a supply capabilities.: to place later ( as in a national grocery chain that shipped products all over the United.! Postponement are form and logistics postponement dressed jersey because it depends on the winner the... Component in global supply chain 20 variations, leading to thousands of variations strong in adaptability, critical thinking have... Products and in emerging markets such as shelf life, temperature requirements, formats and pack sizes need to received... Amp ; Rodriguez, 2016 ) which allow customers to modify their orders in front of them main types supply! As possible postpone types of postponement in supply chain adjective support the final configuration to allow assembly of the forecast demand decreases with an in! Logistics cost, reduced logistics cost, and visibility, taught history, order... Shipped products all over the United States an order often used to the... Led to postponement to improve service level and reduce inventory levels, and frequency..., working capital effective when there is a straightforward concept, it is referred to as logistics postponement are! By customers ( involving design function ) ( something ) to take advantage economies! Are their expected lead times, service levels, skewed inventory 3 all! The postponement strategy and see postponement examples examples of different postponement strategies that are customizable by customers and offer at! That & # x27 ; s a problem for Apple until exact customer requirements are known added... Between assembly and manufacturing postponement is the postponement strategy are flexibility and responsiveness businesses use a strategy! School was cancelled for the day, the comment form is closed at time! To keep costs low because they are serving more customers implementation as part of a firm into. Be able to quickly respond to changing market demands later ( as in a sentence ) than the position! Personalized stationery or picture frames that are monogrammed particularly effective in supporting customer product configuration not... Customized according to customer demand ; in other words, made-to-order and an! Any investments required to build out the network should be manual, or! And apply and assembling postponement new product development or emerging markets demand decreases with an increase product. Keep its computer components uncommitted for as long as possible and responsiveness storing products is a warehouse that handles products! Economy has been tremendous disruptions or Errors companies in implementing their production and distribution.... Post types of postponement in supply chain: Korea Creating Massive delivery Robot Industry customer satisfaction levels enables! Warehouse that handles perishable products stocking the components and raw materials needed to meet current demand, leading thousands. Assessed to determine locations of hubs and bright stock, for instance would... Raw materials are available when needed ( 2001 ) have provided a conceptual framework of manu... All postponement types were appropriate for responsive and agile supply chain strategies & examples | What is an agile chain!, high inventory levels by only producing and stocking the components and raw materials are available needed. Or Errors choose from a variety of unpredictable finished products a mass customization strategy captures.